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Fly News Breaks for July 2, 2019
BL
Jul 2, 2019 | 05:22 EDT
Goldman Sachs analyst Christopher Merwin double downgraded BlackLine to Sell from Buy and lowered his price target for the shares to $41 from $57. Despite being the leading provider of financial close accounting solutions in a $14B total addressable market, billings growth for Blackline has decelerated to the high-teens for the past three quarters, Merwin tells investors in a research note. This is below the 22% revenue growth that the Street currently has modeled for fiscal 2020, adds the analyst. Without a clear catalyst for a reacceleration in billings growth, Merwin thinks consensus revenue growth for next year may be difficult to achieve. Further, he believes Blackline's core product, a seat-based model, limits the ability for upsell.